Gay’s Creamery clotted cream ice-cream.

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What’s the average mark-up price on frozen dairy deserts?

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This is a truly amazing question, and you know what, a seasoned ice cream eater and I’d never even thought about this before!

I would say, rather elusively (mwahahaha) ‘it depends’!

Mijael Feldman, owner of an ice cream chain with 45 stores in Chile informs me that his mark-up is around 40% (https://www.startups.co/answers/707/what-are-average-profit-margins-in-ice-cream-store-business)

Although doing some internet digging and I found answers ranging from a 400%-700% mark-up for those who outsource production and due their due diligence (I’m looking at you theatre ice-cream and not kindly!!!)

Although things get even more complicated when you think about the fact that you can’t just let frozen dairy deserts ‘sit’ as stock – if you don’t sell your deserts it’s a complete loss and its thrown away! Or what about if you own a frozen dairy deserts chain or just a single store, stores in shopping centres, streets, or karts at events and parks – or even all! Overheads will vary with facilities/ costs. Also, if you serve ice cream without a specific measurement your costs would vary due to the size of each portion you serve. What is you make your frozen deserts on-site or outsource from various suppliers? Also, it depends on the state of the market – dessert foods can be a tricky area in today’s more health-focused world. What about spoons, toppings and napkins?! Think about promotions, loyalty schemes and marketing costs too. If you focus on high market ice cream, you can charge high and keep costs down.

This pretty neat soft serve ice cream profit calculator tool can help you work out your exact profit for each cup/cone, daily, weekly, monthly, and yearly based on a five ounce serving! Pretty cool! http://www.taylornewengland.com/sales/soft-serve-ice-cream-profit-calculator/

I don’t know about you but I certainly have a brain freeze now! (hoho!)

Lizzie

by LizzieH on August 27th at 3:52pm
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